Good morning/evening/night guys. As every Monday, find here your weekly dose on market analysis, the most relevant industry stats, and our best tips to profit from this exciting market while learning from it!

Bitcoin

Weekend was certainly a wild one with the daily and weekly closes in focus. A couple of noteworthy TA observations:

- We managed to defend the 21 Weekly EMA - A key level historically and an area we want to continue to see being held. As per my update last week I actually consider it to be a healthy sign that we've tested this level and come back up.- Over the weekend we were whipsawed below and above the 200MA - After a violent drop we actually managed to close above the 200 MA and now we're back below. Extremely choppy.Outside of this if we turn our attention to BTC.D and USDT.D we can see even on a BTC dump we are seeing DOM spiking and we are seeing USDT.D breaking out - showing people are moving to safe havens (stables) to risk off rather than a rotation into alts.

Onchain

BTC STILL healthy - Some notable points below :

- New Address data still showing an uptrend showing a continued uptick in interest

- Exchange net position change still showing strong outflows - being is still being taken off exchange and HOLD'd

- Exchange balance at major lows - currently at 2018 levels and took a big dip down on the recent sell off - supply squeeze dynamics still in effect

- Futures open interest on BTC has come down considerably - removal of froth

- Spend output age bands show us that short term holders have been the biggest sellers recently, whales have accumulated multiple billions during this recent dip.

- We have seen some realised losses on the network since the drop but this is being absorbed buy buyers and selling hasn't outweighed buying pressure - aSOPR shows we've held above the 1 level and currently trying to bounce off.

Current positioning:

- Not looking to sell any spot position's on BTC. The on chain picture dictates my moves here.... currently NO reason to sell spot.

- I've added to my spot holdings at the support level here (see daily chart) - boxed range between 44k and 44.6k

- I'll look to add more spot if we fall to the below levels and on chain picture remains strong. (see daily chart for boxed ranges)

Summary / Outlook:BTC fundamentals haven't changed, the on chain picture is still very strong. After being slapped about a bit on leverage and taking a bit of a step back to look at the bigger picture today I think its fair to say we might see some further consolidation while we flush out some of the further froth across Alts - All feel like they need to cool off a bit / some of that OI needs to be removed and i think that will be my signal to start applying some aggressive leverage trades. For now its just accumulate spot BTC at support zones and wait for that froth to be removed. I'll also be looking for a shift in a change in behaviour from BTCD.D and USDT.D to turn a bit more bearish...

Crypto Stats

Stablecoins supply reached 120 billion mark

Stablecoins supply is on the rise since the launch of USDT. In the year 2020, stablecoins supply had exponential growth of 404% increase from $5.8 billion to $29.22 billion.

In the current year, as of 12th Sep 2021, stablecoins supply has been increased to $120 billion which is a 311% increase. One of the main reasons for this increase is the increasing demand from people as they like to trade with stablecoins more instead of Bitcoin now.

Another major reason is the people transferring their profits from Bitcoin and other cryptocurrencies to stablecoins while the overall crypto market cap is on the rise in 2021.

Ethereum burning fast

After the London update on the Ethereum network, there are thousands of Ethereum getting burned on daily basis. In 1st 10 days of September alone, more than 114k Eth has been burned while in the same period only 26.8k new Ethereum has been added to the supply only which is 326% less than what has been burned.

This is causing a negative supply rate on the Ethereum network which is a very bullish thing for a crypto asset.

Top 10 Projects by TVL Growth in last week on Avalanche Network

Snowball: Snowball, which combines multiple DeFi protocols to create an interconnected experience has gained the highest growth of 62.5% ($29.85m) in total value locked in the last week on Avalanche Network.

YetiSwap: YetiSwap, a decentralized exchange for Avalanche assets with fast settlement and low transaction fees gained more than 44% ($402k) in total TVL in the last week.

Elk: Elk Finance, a decentralized network for cross-chain liquidity, allowing trustless and secure value transfer across chains gained 39.3% ($377k) TVL last week.

Top 10 coins mentioned on Twitter Last Week

BTC: Bitcoin is on the top of the list with more than 2.56 million mentions on Twitter last week while its price dropped to $42.8k after reaching $53k.

ETH: Eth is in 2nd place with more than 638k times mentioned on Twitter while its price dropped from $4k to $3k during the week

CAKE:Cake maintaining its position in the top 5 coins mentioned in a week dropped back to $17.78 price after reaching $26.60 during the last week.

Skin in the game

Best practices during the tumbling market

The market doesn’t remain in favor of you all the time so there are times when the market will go into a slump phase and won’t be good to trade anymore. If you keep trading during those times, you might end up doing huge losses and can make you frustrated which can result in indulging in further overtrading resulting in more losses. Despite indulging in trading, there are things that you can do which will not only save your capital but also will help you stay in the game for a long time.

Focusing on yourself

Step back from the trading desk and focus on yourself, renew your energy to get back harder when the market will be perfect for trading again. You can not only work on personal development but also should spend some quality time with your family. Going on a tour to hilly areas will also refresh your mindset and give you a nice pause from your daily routine. Other things you can do are to arrange some outdoor parties for your friends or you can go to the cinema for quick entertainment. Redesign your diet and workout plan to become healthy that will help have a strong body and a strong mind. Adding yoga to your workout is the best thing for a trader as it helps a great deal.

Learning

Learning is a necessary part of personal development. Never stop learning but during the tumbling market, you can focus on learning new things or researching various things that can not only improve your personality but also your trading knowledge to stay on top of your game. You can start developing new ideas and strategies by learning new things and can backtest them during this time which will only help you become a better trader. Research and development keep a trader ahead of others because old trading strategies stop working when getting public and you can only stay in the game by continuously developing new trading strategies.

Resolve your problems

Everyone has to deal with some personal life problems that can be different for everyone. Some might have relationship problems and others might have some other issues that strongly make a negative impact on your trading performance. During this time you can work on getting rid of the distractions that keep pinching you while trading.

Socializing

Traders are not usually good at socializing because they keep themselves busy trading all the time but you should use this break to make new friends or should join some trading communities. This way you can learn new things from various people that you can later use to improve your trading strategies or can help you in generating new trading ideas. You might have extraordinary abilities to generate new ideas but there is always a limit and you should not be shy of picking good things from others.

Have a nice day, see you soon!Rand